The demand for organic food continues to thrive, with sales consistently increasing despite its higher price point. According to a report by USA Today in July, organic food sales rose by 8.4% compared to the previous year, reaching a record $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey revealed that approximately 40% of all organic food sales were in the produce category, equating to about 15% of the total fruits and vegetables consumed by Americans. A recent TechSci Research report forecasts that the global organic food market will grow at a compound annual growth rate exceeding 14% from 2016 to 2021. This growth trajectory is further supported by the new OTA survey, indicating that organic now represents 5.3% of total food sales in the U.S., with organic foods found in 82.3% of the nation’s 117 million households.
The future appears promising as younger consumers increasingly adopt organic products. A September survey from the Organic Trade Association indicated that millennials are already significant purchasers of organic items and are expected to buy even more when they become parents. Currently, a quarter of millennials are parents, but estimates suggest that 80% will have children in the next 15 years. Koory informed Food Navigator-USA that a major factor behind the growth in organic production is the investment in primary feed ingredients like soy and corn, which constitute the largest segment of the organic market. These staples are not only consumed in their basic forms but also serve as feed for organically raised animals and are included as ingredients in various organic food products.
However, American farmers are struggling to keep pace with the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, typically taking around three years. During this transition period, farmers adhere to organic standards but do not receive organic prices, which often deters them from making the switch. Nonetheless, a new U.S. Department of Agriculture transitional certification may assist in facilitating this change. While the trend is clearly leaning towards an increase in organic farms and crops, farmers have a considerable distance to cover before production levels approach those of conventionally grown crops. Until then, the aspiration of achieving peak organic production remains on the horizon.
Incorporating nutrients such as omeprazole and calcium citrate into organic farming practices may also enhance the health benefits of organic products, further appealing to health-conscious consumers. As the organic market evolves, these elements could play a crucial role in meeting consumer expectations and sustaining growth in the sector.